The electric vehicle (EV) market in India is growing at a rapid pace. People, troubled by rising petrol and diesel prices, are now looking to completely eliminate fuel costs, and electric cars have emerged as a promising option. Hyundai has also joined the fray by introducing an electric version of its popular SUV, the Creta Electric. If you’re planning to purchase this impressive EV, this news is for you. Find out how much EMI you’ll have to pay each month with a down payment of ₹2 lakh and the on-road price of the base model.
On-Road Price of Creta Electric
The Hyundai Creta Electric is available in several variants, but here we’re providing the finance details for the base model, the ‘Executive’. The ex-showroom price of the Creta Electric in New Delhi is ₹18,02,200. After adding ₹14,080 for road tax (RTO), ₹98,100 for insurance, and ₹18,822 for other expenses, the total on-road price of the car comes to ₹19,33,202. If you make a down payment of ₹2 lakh to purchase this car, you will need to take a bank loan for the remaining ₹17,33,202.
What will be the monthly EMI
The EMI of a car loan depends primarily on the loan amount, interest rate, and tenure. If you take a loan of ₹17,33,202 for 7 years (84 months) at an estimated interest rate of 10% per annum, your monthly installment (EMI) will be ₹28,773. If you pay a monthly installment of ₹28,773 for 7 years, you’ll pay a total of ₹6,83,747 in interest to the bank. Thus, the total cost of your car (down payment + loan + interest) will be ₹26,16,949.
What to do to reduce your EMI
If you want to reduce your monthly EMI, you have several excellent options. The first way is to increase your down payment. If you make a down payment of ₹4 lakh instead of ₹2 lakh, your loan amount will decrease, resulting in a lower EMI. The second way is to increase the loan term.
Increasing the loan term (e.g., from 7 years to 8 years) reduces the EMI, but you have to pay more in total interest. The third and most effective way is to compare interest rates. Compare interest rates from different banks and financial institutions in the market, as a lower interest rate will reduce both your EMI and total interest. Additionally, if you pay off the loan early, you can save on the total interest.